SYSCO TAKES BEEF TO COURT: The largest wholesale food distributor in the country has taken Big Beef to court, alleging in recent filings that the "Big Four" packers conspired to fix prices by choking the supply chain. The federal suit, filed by Sysco in late June in the Texas Southern District Court, alleges that Tyson Foods, JBS, Cargill and National Beef — who control over 80 percent of the U.S. beef market — intentionally reduced the number of slaughtered cattle to artificially inflate beef prices and reduce payments to ranchers. The filing also cites an anonymous witness who allegedly "confirmed the existence of a conspiracy." Context: Sysco follows several other large grocers and producers who filed similar cases against the Big Four, which are pending in a Minnesota federal court. It also coincides with a Justice Department investigation into the Big Four and cascading congressional efforts to crack down on beef industry consolidation. Just last week, however, chicken industry executives were acquitted by a federal grand jury in a price-fixing case brought by the DOJ — a major blow to the Biden administration, which has made battling industry consolidation a priority. Why it matters: Sysco is the largest distributor so far to challenge the big meatpackers, ratcheting up the pressure on price-fixing allegations. At the same time, two separate bills are moving in Congress to increase regulatory authority over meatpackers: One would mandate cash-trade and introduce new market transparency requirements and another would create a special investigator for antitrust in the Agriculture Department. The outlook: The special investigator bill awaits final passage in the Senate after passing the House in June and later advancing from the Senate Ag Committee. The cash-trade bill also advanced from the Senate committee, but has not moved in the House. The Sysco case is scheduled for a pretrial conference on Sept. 19. BABY FORMULA PLANT QUIETLY RESTARTS PRODUCTION: The Abbott Nutrition plant in Sturgis, Mich., restarted operations on July 1, Meredith scooped over the weekend. Details: It's unclear why the company hasn't announced the move to the public. The plant is fresh off its second shutdown this year after heavy storms triggered flooding in the facility in mid-June. The plant had originally shuttered in mid-February following detection of a rare bacteria that can be deadly to infants. An Abbott representative mentioned on a call organized by the FDA last Thursday that the plant had restarted July 1 and was producing the specialty formula EleCare, according to two people who were on the call. An Abbott spokesperson confirmed the plant has been producing EleCare since that date. Ongoing shortages: After a sluggish initial response , the Biden administration has been working intently over the past two months to help increase infant formula supplies in the U.S. But progress has been slow. An HHS official told health care providers and parents on a June 23 call organized by the White House that the administration's "Operation Fly Formula" had flown 1 million powder pounds of infant formula into the country as of that date. The official acknowledged, however, that that amounts to just a few days worth of formula consumed in the U.S., where families go through an average of 4 million powder pounds of formula per week. The HHS official also told those on the call that the administration was working to import more of the special metabolic formulas that Abbott previously manufactured at its Sturgis plant, but they were having trouble finding supplies. The administration has secured several flights of specialty formulas so far, but not of the most specialized types. "We are months — months — away from an end to these shortages," a person who was on the call told POLITICO. CATTLE GRAZING CONTRIBUTING TO DEFORESTATION: Deforestation has hit a new high in the Amazon rainforest, with 3,980 square kilometers lost in the first half of 2022, according to new satellite data from the Brazilian Space Agency. The data, reported by the Washington Post, says the Amazon also suffered its worst stretch of fires in 15 years in June, with burns to clear space for cattle grazing leading the way. Climate goals ablaze: The tremendous losses in the Amazon fly in the face of international goals to save the forest, the world's largest carbon sink. Environmentalists warn that too much deforestation in the Amazon could lead to irreversible changes in climate, with global implications. Brazil's President Jair Bolsonaro has on one hand vowed to end illegal deforestation by 2030, but on the other has encouraged the booming cattle ranching industry in the country and has seen deforestation spike during his presidency. Meanwhile, in the States: House Majority Leader Steny Hoyer on Sunday said in a statement he was "deeply dismayed" by the new data and is working "to find a path forward" on his AMAZON21 bill. The bill would create an International Terrestrial Carbon Sequestration Program at the State Department, responsible for allocating $9 billion in grant money for anti-deforestation and carbon sink conservation projects in developing countries. It would also have the U.S. Agency for International Development provide technical assistance to the countries and help them access carbon markets. Also on the Hill this week: The House Agriculture Committee on Wednesday will debate the forestry title of the 2023 farm bill, where it is sure to broach devastating forest fires ravaging the American West. The West has been gripped by record-setting drought this year and climate change continues to drive increasingly deadly fire seasons — both of which have the potential to be devastating for the agriculture industry.
| 
No comments:
Post a Comment